Two milestones of Washington’s Presidency Hamilton’s Financial Plan and the Whiskey Rebellion.

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Presentation transcript:

Two milestones of Washington’s Presidency Hamilton’s Financial Plan and the Whiskey Rebellion

#1: Pay off all war debt Hamilton presented a 3 step program to improve finances Year Output (GDP) Total Population National Debt Debt/Output (Percentage) Debt/Population ($ per person) 1790$240,000,0003,930,000$75,463, $ S250,000,0004,050,000$77,227, $ $270,000,0004,170,000$80,358, $ $300,000,0004,300,000$ 78,427, $ $350,000,0004,430,000$80,747, $ $420,000,0004,560,000$83,762, $ $470,000,0004,700,000$82,064, $17.46 The national debt of the United States, according to the Treasury Dept. Report, included $40 million in domestic debt as well as $12 million in foreign debt, each inherited from the Continental Congress. In addition, the thirteen states altogether owed $25 million from debts accrued during the American Revolution. The combined US debt, as calculated, stood at $77 million

#2: Raise government revenue

Bank would give government a safe place to keep money Businesses would be helped through loans Bank would issue bank notes (paper money used as currency) #3: National bank that would serve many purposes

How should the constitution be interpreted? How much power should the federal government have?

Hamilton believed in a loose interpretation of the constitutionHamilton believed in a loose interpretation of the constitution A very broad and flexible view of power Doing what is “necessary and proper” Thomas Jefferson and James Madison Argued for a strict interpretation of the ConstitutionThomas Jefferson and James Madison Argued for a strict interpretation of the Constitution Constitution does not mention a bank so government cannot create one

Compromise creates a Capital

Whiskey Production Large scale business Paid tax annuallyPaid tax annually –6¢ per gallon Passed cost on to consumerPassed cost on to consumer Small scale personal Couldn’t pay annuallyCouldn’t pay annually –9¢ per gallon Didn’t sell it, couldn’t pass cost on to consumerDidn’t sell it, couldn’t pass cost on to consumer

Washington reviews the troops Carlisle, Pennsylvania September 1794 Governor Henry Lee (VA) commander of the federalized militia commander of the federalized militia

End of Rebellion